Web2.0 described in two sentences
bash.org
bash.org
(Usability will also 'come into its own,' and find itself as an art and science, I believe.)
I guess people get enough value out of it to not worry too much, but there is something to the original quote.
They're obviously different for 'end user' applications, even though network externalities touch on those through file formats.
For phone lines, the network effects are obvious: the value is in 1) connections to people you want to contact frequently, and 2) the potential to contact a wide range of people. No money is made from the actual content, though.
With the "social sites", though, they're aggregating massive amounts of user produced content (most of it pretty insignificant on its own), and making money from that.
At least that's my quick look at it.
There is no such thing as a free lunch. Even if people give away things for free, they usually expect something in return. Even if it is not money, it could be higher social status, a better place in heaven, or whatever. I don't think it is a problem.
Gift economy: http://en.wikipedia.org/wiki/Gift_economy
(This will all change very soon, when people are ready to start paying for a higher - and much more private and secure - level of premium service. You know, the Web will evolve to resemble the "regular' economy more and more, I believe..)
PHILANTHROPY 2.0
It's an idea whose time has come.